Governor Kathy Hochul announced a $350 million state investment in workforce development initiatives, creating the New York State Office of Strategic Workforce Development as part of a broader effort to address the state's employment challenges that remained three times worse than the national average as of Fall 2021.
The new office, first proposed in Hochul's 2022 State of the State address, will operate under Empire State Development (ESD) and coordinate with state agencies including the Department of Labor, State University of New York, and City University of New York to implement comprehensive workforce training programs.
$150 Million in Multi-Year Grant Programs Targets High-Skilled Training
The initiative includes $150 million in multi-year funding for new grant programs that will primarily support employer-driven, high-skilled workforce training programs. New York State partnered with the Business Council of New York State to develop a comprehensive online survey collecting vital feedback from businesses about their workforce needs.
Hope Knight, who leads Empire State Development, will oversee the new office's operations as it works to address what officials describe as New York's incomplete recovery from pandemic-related job losses. The state's job deficit was higher by some measures than any other state, even as employers in high-demand industries have seen a surge in open positions.
Federal Health Department Undergoes Major Consolidation
Meanwhile, the U.S. Department of Health and Human Services announced plans for significant restructuring, reducing its workforce from 82,000 to 62,000 full-time employees while consolidating 28 divisions into 15 new divisions. The downsizing, affecting about 10,000 full-time employees, will save taxpayers $1.8 billion per year according to federal estimates.
Regional offices will be reduced from 10 to 5 under the restructuring plan. The Administration for a Healthy America will focus on Primary Care, Maternal and Child Health, Mental Health, Environmental Health, HIV/AIDS, and workforce development, while Medicare, Medicaid, and other essential health services will remain intact.
Youth Development Programs Expand Training Reach
The U.S. Department of Labor announced in March 2023 that 10 Youth Systems Building Communities make up the second cohort of a federal initiative, with 10 additional communities and their partners receiving individualized training. This program represents part of broader federal efforts to strengthen workforce development at the local level.
The timing of New York's announcement, coming as federal agencies undergo restructuring, reflects the complex landscape facing workforce development efforts. State officials emphasized that the $350 million investment from the FY2023 budget represents a long-term commitment to addressing structural employment challenges that predate the pandemic.
Survey Initiative Seeks Business Input on Training Needs
The comprehensive online survey developed with the Business Council of New York State aims to identify specific skills gaps and training priorities across industries. This data collection effort will inform how the new Office of Strategic Workforce Development allocates resources and designs programs.
State officials noted that while some sectors have recovered from pandemic-related losses, others continue to face significant challenges in matching available workers with open positions. The mismatch between job openings and worker skills has been particularly pronounced in technical and healthcare fields.
The Office of Strategic Workforce Development will coordinate existing programs while developing new initiatives tailored to regional economic needs. The office will work with local economic development organizations, educational institutions, and employers to create training programs aligned with actual job market demands.
As these state and federal initiatives move forward, workforce development experts emphasize the importance of measuring outcomes and adjusting programs based on employment data and employer feedback. The success of New York's $350 million investment will likely influence how other states approach similar workforce challenges in the coming years.